Trump Delays Higher Tariffs for Most Nations by 90 Days, but Boosts Tariffs on China to 125% | US News
Donald Trump has temporarily suspended his “reciprocal” tariffs on most of America’s trade partners for a period of 90 days, while ramping up tariffs on China to 125%.
Amid rising concerns about a global recession, stock markets worldwide experienced a steep decline after Mr. Trump revealed his “Liberation Day” tariffs on April 2.
Nonetheless, the S&P 500 stock index surged by 9.5%, and global markets rebounded following Mr. Trump’s announcement on Wednesday that the heightened tariffs on nearly all trading partners would be suspended.
Latest on tariffs: Trump explains his decision to pause certain tariffs
In a message on his Truth Social platform, Mr. Trump stated that the “90-day pause” applied to “more than 75 countries” that had not retaliated against his tariffs “in any manner.”
He further clarified that during this hiatus, these countries would still incur a “significantly reduced” 10% tariff, which would take effect immediately.
This is a decrease from the 20% tariff he had previously imposed on goods from the European Union, 24% on imports from Japan, and 25% on South Korean products.
The UK was already facing a universal 10% tariff under the new framework.
Mr. Trump noted that the 125% tariff on goods imported from China is “effective immediately.”
He remarked: “At some point, hopefully in the near future, China will come to realize that the era of taking advantage of the USA and other countries is no longer sustainable or acceptable.”
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Donald Trump says China ‘wants to make a deal’
Shortly after Mr. Trump announced the tariff pause for most countries, a White House official clarified that this exemption does not extend to the 25% duties imposed on certain imports from Mexico and Canada.
These tariffs were initially declared in February, and Mexico and Canada were not part of the “Liberation Day” announcements.
Before the 125% tariff on China was disclosed, Beijing announced a 50% increase in tariffs on US goods.
This resulted in tariffs of 84% being applied to US goods, up from the previously planned 34% by China.
This escalation followed the US imposing an additional 50% tariff on top of the 34% already announced on Mr. Trump’s so-called Liberation Day.
The increases meant that China was facing a 104% tariff prior to the latest hike.
Mr. Trump addressed reporters in the Oval Office. Pic: Reuters
China ‘wants to make a deal’
When asked about his cryptic post “BE COOL” on Truth Social prior to the announcement of the tariff pause, Mr. Trump told reporters at the White House: “I thought that people were overreacting a bit.”
“They were getting anxious, a little bit jittery,” he added.
Mr. Trump continued: “China wants to reach an agreement; they’re just unsure of how to approach it.
“[They’re] quite proud, and President Xi is a proud man. I know him very well, and they’re in the process of figuring it out, but they want to strike a deal.”
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White House press secretary Karoline Leavitt stated that this retreat was part of a grand negotiating tactic employed by Mr. Trump.
“President Trump has maximized his negotiating leverage,” she remarked, adding that the media “clearly failed to comprehend what President Trump is executing here.”
US Treasury Secretary Scott Bessent also asserted that Mr. Trump had fortified his position through these tariffs.
“President Trump created maximum negotiating leverage for himself,” he noted.
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Mr. Bessent indicated that Mr. Trump chose to increase tariffs on China due to Beijing’s lack of communication with the US and its decision to raise its own tariffs on US products.
Downing Street asserted that the UK will continue its negotiations with the US in a “cool and composed” manner.
A spokesperson for Number 10 stated: “A trade war benefits no one. We seek to eliminate tariffs entirely, so for the sake of jobs and livelihoods across the UK, we will continue to negotiate in Britain’s best interests with a calm and measured approach.”
